The Two-Way

8:49 am

Tue February 28, 2012

Order For Durable Goods Drops 4 Percent

The Commerce Department says a drop in spending on transportation and business equipment contributed to a 4 percent decrease in manufactured durable goods in January.

The decrease follows three consecutive monthly increases, including a 3.2 percent increase in December.

The AP reports:

"So-called core capital goods, which are viewed as a good measure of business investment plans, fell 4.5 percent, the biggest drop in a year. Demand for these goods hit an all-time high in December as companies rushed to take advantage of expiring tax breaks on purchases of capital goods.